AMD announced its financial results for the last quarter of fiscal year 2026. The most striking development in the company’s balance sheet was that the data center department continued to grow unabated thanks to artificial intelligence-driven demand. While data center revenues increased by 107 percent on an annual basis to $6.7 billion, this figure exceeded the $5.8 billion recorded in the previous quarter. In contrast, the gaming division performed weaker in the same period, with revenues falling 31 percent compared to the same period last year, remaining at $779 million.
According to the results announced by the company, total revenue increased by 50 percent on an annual basis and reached its highest level ever with 11.5 billion dollars. This table reveals that the acceleration of investments, especially in artificial intelligence infrastructures, directly contributes to AMD’s data center activities. While the data center segment alone constituted 58 percent of the company’s revenues, it remained the most important revenue item in AMD’s growth. In addition, the company’s consumer-focused division, which includes client and gaming activities, also recorded 6 percent growth on an annual basis.
Artificial intelligence investments support AMD’s data center growth
In his evaluation of the financial results, AMD Chief Financial Officer Jean Hu stated that the strong performance in the data center business is the basis of the company’s record revenue. Hu stated that the share of the data center department in total revenue reached 58 percent, and pointed out that this area has become the main factor determining the growth rate of the company. Recently, cloud service providers, corporate customers and companies developing artificial intelligence models have increased their investments in high-performance processors, which positively affects AMD’s sales in this segment.
In addition, AMD’s EPYC server processors and Instinct series artificial intelligence accelerators are among the core products of the company’s data center portfolio. Increasing demand for high-performance hardware, especially used for training large language models and inference operations, contributes to AMD increasing its revenues in this market where it competes with NVIDIA. The company continues to expand the usage area of its products thanks to its recent collaborations with different cloud providers and corporate customers.
On the other hand, the picture looks different in the gaming section. AMD cited the decline in orders for semiconductor components used for Xbox Series X, Xbox Series S, PlayStation 5 and Valve Steam Deck as the main reasons for the decline in gaming revenues. Console manufacturers’ approach to the later stages of the hardware life cycle and price increases in some markets were also among the factors that negatively affected sales volume. Therefore, the company’s gaming segment was not able to contribute at a level that would support the strong growth in its data center division.
Despite this, a more positive outlook on the client side attracts attention. AMD announced that client revenues increased by 23 percent on an annual basis, driven by the demand for the Ryzen processor family. Increasing interest in new generation computers supported by artificial intelligence in the desktop and laptop market is among the factors supporting the sales performance of Ryzen processors. In addition, the company aims to strengthen its position in the computer market with the new generation processor family it has developed for both individual users and corporate customers.
AMD CEO Lisa Su stated that artificial intelligence is rapidly increasing the demand for computing capacity in all markets where the company operates. According to Su, AMD’s product portfolio and expanding customer base create a strong position for the company to capitalize on the opportunities in this growing market.
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